Business Directories

Apartment prices jump 13pc in Jordan

Amman, October 24, 2013

Although rental rates in Jordan experienced no significant changes during the third quarter (Q3) of 2013, apartment sales prices jumped 13 per cent over the past 12 months, a report said.

Increased supply and competition among landlords has resulted in apartment rental rates remaining relatively unchanged compared to Q2 2013, while year-on-year growth amounted to 3 per cent on average, said the latest quarterly real estate report for the Kingdom, released by leading UAE-headquartered property management company Asteco.

However the apartment sales market has performed well, with a quarterly increase of 2 per cent contributing towards a 13 per cent rise over the last 12 months.

“Sales prices over the past year in areas such as Abdoun (up 12 per cent), Um Othainah (up 10 per cent) and Der Ghabar (up 10 per cent) saw good demand levels predominantly from Jordanian nationals. Investors seemed predominantly interested in small to medium sized apartments such as studios to two bedroom units, while end users preferred larger dwellings of 250 to 300 sq m,” said John Stevens, managing director, Asteco Property Management.

To buy an average apartment in Abdoun now costs JOD1,200 ($103,000) per sq m, however to rent a two-bedroom apartment in the same district would cost a tenant JOD9,550 per annum, an annual increase of just 3 per cent.

Similar to the residential leasing sector, office rents witnessed no quarterly change on the back of increased supply and limited demand from local companies for small office units. An average office space in Wadi Saqrah would lease for JOD95 per sq m per annum.

Asking prices for commercial property sales have increased due to the rising cost in construction materials and land; however, there is no evidence to support that units are actually transacting at those levels, said the report. Shemeisani and Sweifieh were showing marginal annual gains of 6 per cent and 3 per cent respectively.

“While demand is predominantly for medium sized units of 150 to 250 sq m, the majority of owners offer larger sizes of 400 sq m and above in the form of half and full floors,” added Stevens. – TradeArabia News Service